Right now, I’m in Baby Step 2, working on paying off debt with the snowball method. But I’ve already started looking ahead to what comes next, because Step 3 is a big one: saving 3–6 months of expenses in a fully funded emergency fund.

This step is about creating a strong financial safety net. It’s there to cover the big “what ifs” of life; job loss, medical expenses, or major home/car repairs, so you don’t slip back into debt once you’ve fought your way out.

Why I’m Thinking Ahead
I recently heard Jade Warshaw (Ramsey Solutions coach) talk about this step, and she made a great point: once you reach Step 3, the money shouldn’t just sit in a regular savings account. It belongs in a High-Yield Savings Account (HYSA).

Here’s why that stuck with me:

• Easy access when needed. Emergencies don’t wait, so it has to stay liquid—not tied up in CDs or investments.
• Earn while you wait. Right now, Ally Bank offers around 3.5% APY, compared to my local credit union’s 0.25% APY. That’s a big difference in how fast the fund can grow while it sits untouched.
• Keeps it “out of sight.” Having it separate from your everyday bank account reduces the temptation to use it for non-emergencies.
  

How Much Is Enough?
Dave Ramsey recommends 3–6 months of expenses (not income). That means looking at what it really takes to keep life running: housing, food, transportation, insurance, and other must-haves.

Three months may be enough if you’ve got stable work or a dual-income household. If you’re self-employed or just want extra cushion, six months gives you more breathing room.

Looking Down the Road
I’m not there yet; but thinking ahead helps me stay motivated. Knowing that Baby Step 3 is waiting gives me a vision for the kind of peace and stability I’m working toward. When the time comes, I want that money in the right place... growing, safe, and ready for whatever life throws my way.

When it comes to money, most of us want the same things: less stress, more security, and the ability to plan for the future without constantly worrying about bills or debt. The problem is, money can get complicated quickly. Between budgeting, saving, paying down debt, and thinking about retirement, it’s easy to feel like there are too many moving pieces.

That’s why I’ve decided to focus on something simple but powerful: Dave Ramsey’s 7 Baby Steps.

Why the Baby Steps?
What I love about the Baby Steps is that they take all the noise out of personal finance. Instead of trying to do everything at once, the plan breaks things down into clear, manageable stages. You don’t have to figure out all of life’s financial challenges in one sitting. You just have to take the next step.

For me, that’s what makes this approach realistic. It’s not about being perfect with money, it’s about having a straightforward roadmap and the discipline to keep moving forward.

What to Expect Here
Over time, I’ll be writing posts that walk through each of the 7 Baby Steps in detail:

1. Save $1,000 for a Starter Emergency Fund
2. Pay Off All Debt (Except the House) Using the Debt Snowball
3. Save 3–6 Months of Expenses in a Fully Funded Emergency Fund
4. Invest 15% of Household Income for Retirement
5. Save for Kids’ College (If Applicable)
6. Pay Off Your Home Early
7. Build Wealth and Give Generously

But here’s the key: this won’t be a weekly blog series or a quick run-through. Instead, it’ll unfold as part of my own journey. Some steps (like the debt snowball or paying off a mortgage) naturally take months or even years, and I want to share these posts in real time as I reach them.

That means there may be some space between posts, and that’s okay. This process isn’t about speed; it’s about steady progress.

Why I’m Sharing This
I’m not a financial guru, and I don’t have it all figured out. What I do have is the same desire a lot of people share: to be wise with money and build a more secure future. Writing about the Baby Steps is a way to stay intentional on my own journey and hopefully encourage someone else along the way.

Moving Forward
So, consider this the starting point. I’ll be posting about each Baby Step as I get there, sharing what I’ve learned, how I’ve applied it, and the lessons along the way.
If you’ve ever wanted to take control of your finances but felt overwhelmed, this series is for you. Let’s walk through it together... one step at a time.

If you’d like to see the official overview of Dave Ramsey’s Baby Steps, you can check it out directly on Ramsey Solutions.